The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry (Department of Commerce), on August 20, 2026, amended Paragraphs 2.52 and 2.53 of the Foreign Trade Policy (FTP), 2023, with immediate effect. The amendment revises the provisions relating to the denomination and realisation of export contracts and the eligibility for export benefits where export proceeds are realised in Indian Rupees.
Under the revised Para 2.52, export contracts and invoices, except those involving Asian Clearing Union (ACU) member countries, may be denominated in foreign currency or Indian Rupees, with export proceeds permitted to be realised in either foreign currency or Indian Rupees. Contracts involving ACU members other than Nepal and Bhutan shall follow the currency determined by the ACU or RBI directions, while exports involving Nepal and Bhutan may be denominated and settled in Indian Rupees or as per RBI directions. The amendment also provides for INR settlement through specified Rupee accounts of persons resident outside India, subject to applicable FEMA requirements.
Under revised Para 2.53, export proceeds realised in Indian Rupees through the permitted banking channels are made eligible for export benefits/incentives and fulfilment of Export Obligations under the FTP, at par with export proceeds realised in freely convertible currency, subject to the specified conditions. In the case of exports to Iran, the provisions remain subject to Para 2.19 of the FTP.
[Notification No. 30/2026-27]
